APRP Legal Framework
Office of Foreign Assets Control (OFAC) - CORRECT ANSWER-Administers economic
sanctions and embargo programs that require assets and transactions involving
interests of targeted countries, targeted country nationals, and other specifically
identified companies and individuals to be frozen. (payment systems: ACH, Check,
Fedwire & Card)
Bank Secrecy Act/Anti-Money Laundering (BSA/AML) - CORRECT ANSWER-Requires
U.S. financial institutions to assist U.S. government agencies to detect and prevent
money laundering. (payment systems: ACH, Check, Fedwire & Card)
USA PATRIOT Act (Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism) - CORRECT ANSWER-Act broadened
the scope of the Bank Secrecy Act to focus on terrorist financing as well as money
laundering.
• CIPs (Customer Identification Programs) require financial institutions to complete the
following prior to opening a new account:
o Verify the identity of any person seeking to open an account (i.e., driver's license,
passport, or government issued id);
o Maintain records of the information used to verify identity; and
o Consult government known or suspected terrorist lists (e.g., SDN List) to determine
whether the customer appears on any such list.
(payment systems: ACH, Check & Fedwire)
Operation Chokepoint - CORRECT ANSWER-Visa and MasterCard rules that prohibit
doing business with online tobacco sales, pornography and debt consolidators.
(payment system: Card)
Regulation D - CORRECT ANSWER-Defines reserve requirements and identifies
transaction and non-transaction accounts. Applies to ACH processing for the return of
entries to non-transaction accounts. (payment system: ACH)
Regulation J - CORRECT ANSWER-Check - Governs check collection through the
FRB.
Fedwire Funds - Governs the rights and responsibilities of the Federal Reserve System
and the users of Fedwire.
NACHA Operating Rules - CORRECT ANSWER-Primary source for rules and
regulations for the Commercial ACH Network (Payment System: ACH)
ECCHO Rules - CORRECT ANSWER-Govern image exchange between members.
(Payment system: Check)
Office of Foreign Assets Control (OFAC) - CORRECT ANSWER-Administers economic
sanctions and embargo programs that require assets and transactions involving
interests of targeted countries, targeted country nationals, and other specifically
identified companies and individuals to be frozen. (payment systems: ACH, Check,
Fedwire & Card)
Bank Secrecy Act/Anti-Money Laundering (BSA/AML) - CORRECT ANSWER-Requires
U.S. financial institutions to assist U.S. government agencies to detect and prevent
money laundering. (payment systems: ACH, Check, Fedwire & Card)
USA PATRIOT Act (Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism) - CORRECT ANSWER-Act broadened
the scope of the Bank Secrecy Act to focus on terrorist financing as well as money
laundering.
• CIPs (Customer Identification Programs) require financial institutions to complete the
following prior to opening a new account:
o Verify the identity of any person seeking to open an account (i.e., driver's license,
passport, or government issued id);
o Maintain records of the information used to verify identity; and
o Consult government known or suspected terrorist lists (e.g., SDN List) to determine
whether the customer appears on any such list.
(payment systems: ACH, Check & Fedwire)
Operation Chokepoint - CORRECT ANSWER-Visa and MasterCard rules that prohibit
doing business with online tobacco sales, pornography and debt consolidators.
(payment system: Card)
Regulation D - CORRECT ANSWER-Defines reserve requirements and identifies
transaction and non-transaction accounts. Applies to ACH processing for the return of
entries to non-transaction accounts. (payment system: ACH)
Regulation J - CORRECT ANSWER-Check - Governs check collection through the
FRB.
Fedwire Funds - Governs the rights and responsibilities of the Federal Reserve System
and the users of Fedwire.
NACHA Operating Rules - CORRECT ANSWER-Primary source for rules and
regulations for the Commercial ACH Network (Payment System: ACH)
ECCHO Rules - CORRECT ANSWER-Govern image exchange between members.
(Payment system: Check)
